5 Keys to Successful B2B E-commerce
Taking online business-to-business sales to the next level
The term E-commerce usually brings to mind familiar business to consumer (B2C) websites that have revolutionized the way we shop over the past 20 years. Business to business (B2B) E-commerce arrived on the scene decades earlier, with pioneering companies utilizing pre-internet technologies like Electronic Data Interchange (EDI) to simplify procurement and logistics processes. With the web now providing unlimited options for both individual and business purchases, the age of B2B E-commerce has officially arrived.
B2B customers have different needs and expectations than their B2C counterparts, so strategies to attract and retain customers online must be adapted accordingly. Improved technology makes it easier for small B2B vendors to create web stores that rival their larger competitors. Successful B2C E-commerce retailers also understand that top shelf feature lists and functions must be augmented by the convenience, security, and customer support that all online buyers have come to expect.
“In a world where consumers had limited choice, you needed to compete for locations. But in a world where consumers have unlimited choice, you need to compete for attention.” – Michael Ross
The expanding B2B marketplace
B2B E-commerce has been expanding even faster than B2C in recent years, with double-digit annual growth expected to continue into the foreseeable future. As technology improves and buyers discover more options for purchasing commodities and services online, this ongoing expansion will be fueled by business buyers looking to E-commerce as their de facto option.
B2B E-commerce platforms are also more user-friendly than in years past, which has allowed the marketplace to expand into different regions and industries. Asia makes up roughly 80 percent of the global B2B E-commerce market today, but Europe and the Americas are also seeing more transactions shift from EDI and other traditional procurement channels to E-commerce platforms.
What makes B2B different?
The obvious difference between B2C (business to consumer) and B2B E-commerce is that the former targets individual customers while the latter targets businesses. Businesses typically have larger order values and slower decision-making processes, since multiple stakeholders may be involved. B2B purchases might include complex or highly technical products that require extensive research. Additional differences between B2C and B2B E-commerce include:
- Pricing structure: While pricing for B2C customers is typically fixed and displayed upfront, repeat B2B customers may be able to negotiate preferred pricing or bulk discounts.
- Flexible payment methods: B2C transactions usually require payment in full using a credit or debit card, but B2B E-commerce retailers often provide more flexible net 30, 60, or 90 day payment terms.
- Customer service: Both B2C and B2B place an emphasis on responsive and personalized customer service, but B2B E-commerce retailers are more likely to focus on long-term relationships or assign dedicated account managers to top clients.
As business customers become more discerning, many of the attributes that make a compelling B2C webstore are also becoming differentiators for B2B retailers contending with a sea of competition. Engaging content, real-time data, effective order management software, and intuitive navigation are among the features appreciated by customers of all types.
5 keys to successful B2B E-commerce
Gone are the days when a B2B website was simply an extension of the brick-and-mortar experience where retailers would patiently wait for established customers to arrive. The rise of digital shopping has made customers of all types more discerning as they review digital storefronts and the value they provide.
1. Choosing the right B2B E-commerce platform
Choosing an E-commerce platform might be one of the most important decisions you ever make for your business. There is no shortage of viable third party platform providers on the market, so it’s worth doing some intensive research to find out which of them best suits your budget and needs. Some of the must have features to look for in a robust B2B platform include:
- Support for multiple currencies and languages
- Security features like encryption and PCI compliance
- Easy integration with inventory management software
- Advanced analytics and reporting capabilities
Along with technical features, scalability, and ease of use, you should also consider the level of customer support and training offered by the third-party platform provider to ensure they align with your long-term expectations.
2. Streamlined order fulfillment
Business customers can be even more exacting than individuals when it comes to reliable deliveries and stress-free order fulfillment, since business buyers may be responsible for managing thousands of items with little time available to troubleshoot problems. Business orders might also include special packaging or handling requirements that must be met consistently.
Along with integrated order management software, B2B E-commerce retailers can ensure their order fulfillment processes meet customer expectations by implementing real-time inventory tracking to minimize stockouts or overstock conditions, automating fulfillment workflows to improve efficiency and reduce errors, and partnering with logistics suppliers to safeguard shipping and delivery practices.
“To deliver a memorable customer experience, you need high-performing fulfillment operations.” – Brian Mattingly
3. Deploying “B2C” convenience
It is important to remember that B2B purchases are completed by human buyers with the same affinity for convenience, reliable website performance, and hassle-free service as individual customers. B2B retailers can steal a page from the B2C playbook by providing benefits like personalized offerings and recommendations, easy checkout processes, and mobile-friendly platforms that make it easier to complete transactions at home or on the go. Additional B2C features that apply equally well to the B2B experience include:
- Advanced filtering and search options
- Loyalty programs, incentives, and rewards
- Real-time order and delivery tracking
As the technology driving E-commerce storefronts continues to improve, more B2B retailers will be able to incorporate advanced features like AI-driven chatbots and virtual assistants to handle routine customer inquiries while freeing up customer service personnel for more complex and specialized tasks.
4. Customer relationship management (CRM)
Customer relationship management (CRM) is a business strategy that utilizes data collected during order fulfillment, sales transactions, and customer service interactions to provide more personalized service and offerings while improving forecasting, marketing, and retention throughout the customer relationship. CRM software complements B2B E-commerce practices by unifying customer data from all sales channels and supporting real-time order access and editing processes.
While CRM integration is valuable for both B2C and B2B platforms, capabilities like estimating the lifetime value of customers and precise customer segmentation are especially useful for B2B applications. CRM also provides the wealth of customer information and insight B2B proprietors need as they decide how to apply customer service resources and talent.
5. Software and automation
A user-friendly, scalable, and secure E-commerce platform is just the beginning. For B2B retailers with diverse product offerings and clientele, seamless integration with inventory management, warehouse management, mobile point of sale (POS), and order fulfillment applications and software is essential. These linkages safeguard the inventory accuracy, logistics, and order processing performance that differentiate B2B retailers and create a winning brand.
Automation is the other side of the technology coin for B2B E-commerce. Leveraging the latest automation technology helps retailers offload repetitive tasks and reduce errors. While only the largest B2B retailers can deploy fully automated picking, packing, sorting, and order fulfillment processes that include robotics, automated guided vehicles (AGVs), and advanced inspection technology, automation can be an iterative process that begins with barcode scanning and conveyors and gradually evolves towards these more sophisticated solutions.
B2B E-commerce success: Final thoughts
B2B E-commerce has come a long way since the first online transactions were completed almost half a century ago. The speed, size, and versatility of the internet have combined to establish a 21st century marketplace where business customers make decisions with potentially lucrative implications. Like all websites vying for SEO prominence and brand recognition, the best B2B websites leverage technology to create an enticing customer experience.
The Agiliron cloud-based software suite includes inventory management, warehouse management, and full-featured CRM to help you manage and fulfill customer orders seamlessly while providing personalized pricing, delivery, and customer support. Agiliron offers an extensive library of templates that allow new B2B E-commerce stores to launch or migrate quickly while integrating easily with popular applications including Shopify, Walmart, and eBay.
B2B webstores have become beacons that can attract new customers and provide opportunities for repeat business and long-term relationships. The look and feel of a B2C E-commerce website are essential, but the functionality, service, and products behind it must continue to meet the lofty standards of your business. Contact us today and allow our solution experts to explain how your B2B webstore can be optimized and enhanced.
